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Economics Discuss Economics here.

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Old 06-12-2008, 10:48 AM
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Of course, not everybody has such a rosy view of the economy...

BBC NEWS | Business | Chavez's olive branch for firms

Quote:
Venezuelan President Hugo Chavez has announced a plan to help the country's businesses as rising inflation threatens the economy.

Under a stimulus package unveiled on Wednesday, Mr Chavez scrapped a tax and eased currency controls that made it harder for Venezuelan firms to operate.

He also announced a $1bn fund to help key industries such as food and oil.

Economic growth in Venezuela has slowed this year as inflation jumped to more than 31% last month.


The tax was stopping the productive process and boosted inflation
President Hugo Chavez

Growth slowed to a four-year low of 4.8% in the first quarter of 2008, a sharp fall from 8.8% the previous year.
Conventional wisdom sees a slowing economy as a bad thing. I credit most of Venezuela's largesse to rising oil prices, not Chavez's policy. (clarification, lowering in wealth disparity credits Chavez, gdp rises credit oil). If anything he's moderating from his policy to make sure the economy stays stable and growing.

Just more proof that a mixed market social democracy is the best for the world (right now).
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Old 06-12-2008, 10:52 AM
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Actually speaking in temrs of human existence on the planet we want the world economy as a whole to stop growing as much as possible, the more recourses we use and emissions we let out the quicker we fall into disaster.
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Old 06-12-2008, 01:50 PM
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Quote:
Originally Posted by Donkey Jote View Post
I credit most of Venezuela's largesse to rising oil prices, not Chavez's policy. (clarification, lowering in wealth disparity credits Chavez, gdp rises credit oil).
Well there were large increases in oil prices in the past, but Venezuela remained in recession. It is because the resource is now publicly managed that the economy can turn as the income doesn't rest in miami bank accounts and in oligarchs pockets.
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Old 06-12-2008, 10:13 PM
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I can't wait for the end to come... For electing an ash the people deserve what is coming. But America will be there with its hand out to offer help and aid as usual with any thrid world country.
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Old 06-12-2008, 11:41 PM
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Quote:
Originally Posted by leviathon435 View Post
Actually speaking in temrs of human existence on the planet we want the world economy as a whole to stop growing as much as possible, the more recourses we use and emissions we let out the quicker we fall into disaster.
Not going to happen, China and India are just now coming online.
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Old 06-13-2008, 09:29 AM
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Quote:
Originally Posted by Comrade Joe View Post
Well there were large increases in oil prices in the past, but Venezuela remained in recession. It is because the resource is now publicly managed that the economy can turn as the income doesn't rest in miami bank accounts and in oligarchs pockets.
You kind of ignored the rest of the substance of my post.
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I can't wait for the end to come... For electing an ash the people deserve what is coming. But America will be there with its hand out to offer help and aid as usual with any thrid world country.
BS.
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Old 06-13-2008, 11:07 AM
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Quote:
Originally Posted by Donkey Jote View Post
You kind of ignored the rest of the substance of my post.

i responded to the part that most needed corretion.

On your first point, conventional wisdom may dictate so, but all things are relative and so growing at around 5% is only viewed as a bad thing because previous growth was so rapid. However, take 5% on it's own and it's a good record.

I also agree with Levi that on the whole we ought to want economies to slow down as current growth is unsustainable given the finite nature of resources.
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Old 06-13-2008, 11:26 AM
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My point is that your rosy picture of the Venezuelan economy as very healthy is more or less a fabrication.

Rampant inflation?

Come on man, partisanship shouldn't blind you to the problems that a country is having. It's like someone denying that the US economy is in straits because We r Capitlizzt!
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Old 06-13-2008, 12:34 PM
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Quote:
Originally Posted by Donkey Jote View Post
My point is that your rosy picture of the Venezuelan economy as very healthy is more or less a fabrication.

Rampant inflation?

Come on man, partisanship shouldn't blind you to the problems that a country is having. It's like someone denying that the US economy is in straits because We r Capitlizzt!
You excepted more? With a dictator and corruption! Proof positive that socialism is worth the lies it is based upon. B.S. back at ya. Your the one that can't accept the truth, not me.
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Old 06-13-2008, 12:37 PM
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With the many posts about how this thrid world country is going to do this or that and bring down America, lol
Now the truth is out and you guys can even accept it. Capitalism is what works.
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